 "RBI story chart")
The Reserve Bank of India (RBI) on Friday conducted the last bond auction of the current financial year.
The government borrowed Rs 80 billion through the benchmark 10-year bonds and Rs 30 billion through a floating rate bond. The 10-year bonds have ready takers but floating rate bonds, or floaters, have generally low demand and are rarely-used instruments.
Since the government borrowed through floaters, the interest rate is likely to rise in the near term.
“When interest rate is on the rise, investors do not want to get stuck with a fixed coupon rate. That is when
The government borrowed Rs 80 billion through the benchmark 10-year bonds and Rs 30 billion through a floating rate bond. The 10-year bonds have ready takers but floating rate bonds, or floaters, have generally low demand and are rarely-used instruments.
Since the government borrowed through floaters, the interest rate is likely to rise in the near term.
“When interest rate is on the rise, investors do not want to get stuck with a fixed coupon rate. That is when
